Cyanotech Reports Quality Key to Spirulina Sales

Cyanotech Reports Quality Key to Spirulina Sales

KAILUA-KONA, HawaiiCyanotech Corp. (NASDAQ:CYAN) reported May 21for its fiscal year (FY02), ended March 31, sales rose due to increased bulksales for its three major products.

Net sales came to $9 million compared to FY01s $8.2 million, due to anincrease in sales of bulk products such as Spirulina Pacifica, NatuRose andBioAstin. Gross margin increased to 32 percent of sales from 19 percent,primarily due to increased efficiencies and a finished goods inventoryadjustment made in FY01. The company reported a net loss of $1.8 million, or$.10 per diluted share lost, compared to the previous years loss of $2.6million, or $.15 per diluted share lost.

The company reported the spirulina market is mature with slow growthprojected. The challenge, according to Cyanotech, is to increase market shareamong customers who seek high-quality product. The company believes that of itsthree major product offerings, BioAstin has the largest growth potential,especially among cosmetic manufacturers, pharmaceutical companies offeringbranded nutraceuticals and direct marketing companies.